Proposal for Submission
1.0 Research Topic
Virtual Investment
Our research topic is about virtual investment. Investment have allows people to regenerate their money in terms of high return. In this era, we do have internet and investment has grow to another form which is online investment or virtual investment. Investment is one of the major contributors of economy. Growth of investment is significant and bank or stock exchange are finding new platform to attract more potential investors.
We think that virtual investment is another revolution for the traditional stock market. Internet is the reason that we need to do further study on the relationship between virtual investments and applied on the stock market. Internet is the common channel for all teenagers and adults as a main tool to communicate and solve problems. However, Malaysians are not using this channel to participate in virtual investment. Most of the people go online for social networking but is the virtual investment not aware by people or they prefer to go personally rather than online. Hence, this is very interesting to find out the reason of not participating in online stock market.
2.0 Reasons for doing this topic:
We are interested to find out how dotcom’s bubble burst on the 1990’s actually affect people behaviour in buying stock. Internet has made stock market investment widely available for investor all around the world. People can now access to business world information and examine the economic and made financial decision on their own whether to buy or sell stocks. This has eliminate the high intermediaries commission from the traditional way of buying stock where high commission will be charge when people wanted to buy stock which discourage a huge potential market to hold back from investing.
Besides, we would like to understand about the benefits and challenges for virtual investment. Although Malaysia is promoting a lot on innovation or ICT, there are still lacks of awareness in online stock market. We are keen to find the benefits that can lead to more people involve in online stock market rather than the ordinary method.
Other than that we would also like to know the security factors and other potential issues that will discourage virtual investment such as economy condition where people preferred do individual online or seek for financial and broker adviser. From another perspective, through this study we hope to help create awareness of virtual investment to give people more knowledge about doing investing online which will indirectly help makes our country prosperous and powerful.
3.0 The objectives of our research paper are to:
1. Find out how the 1990’s bubble burst actually influence people behaviour in buying stock online.
2. Understand the benefit and challenge for virtual investment.
3. Highlight the future of virtual investment
4.0 Report Outline
Table of content
Executive Summary
1.0 Introduction
2.0 1990’s bubble burst that influence people behaviour in buying stock
3.0 Various virtual investment
4.0 Advantages of virtual investment (benefits)
5.0 Challenges of virtual investment (problems)
6.0 Findings
7.0 Impact of virtual investment
8.0 Privacy and security issues
9.0 Future of virtual investment
10.0 Conclusion
11.0 References
5.0 Literature Review / Background
Investment is the commitment of money or capital to purchase financial instruments or other assets in order to gain profitable returns in the form of interest, income, or appreciation of the value of the instrument. Investment is related to saving or deferring consumption based on mapsofworld.com. When seeking information in the financial marketplace, individuals have many choices. Some individuals turn to financial information sources such as stockbrokers, financial planners, financial counsellors, books magazines and the Internet to help shape financial knowledge and behaviours (Bei, Chen, & Widdows, 2004; Lee & Cho, 2005). There a various type of investment such as stock investment, bond investment, real estate investment and so on.
Virtual investment is about doing investment online. It’s like a platform at where it enables people to buy stock in the virtual environment base on real stock market exchange. Virtual investment allows trader to make live trade with real stock market situation in virtual money to learn about the fundamental of trading and some investing skill in virtual environment without using real money (OSK, 2010).
With virtual investment, a lot of potential market from the medium or lower income group can actually get to learn and test their investing skills as the high cost of intermediaries have been eliminated. Also with the virtual game contest held by various stock exchange company have also encourages people to start investing online by giving them free virtual money to start offs. Once they master it, they can deposit their real money to play. Stock exchange Company like Forex advice its member to trade with a demo account to test and master their investing skills before opening a live account with real money (Forexmalaysia, 2010). Besides, let online resources help with investments and use these helpful sites to keep track of news, portfolios, mutual funds, and bonds ( Urology Times, 2003).
6.0 Main References for major assignments
Blau, Joel M., 2003, ‘Let Online resources help with investments’, EBSCOHost , p. 42, vol. 31, no. 2, AN 9029477, viewed 23 October 2010
This journal focuses on various types of online resources that actually can help investments to keep track of news, portfolios, mutual funds, and bonds. For example, a student who needs technical analysis, the site to visit is Prophet.net that allows building charts using exceptional sets of technical tools.
CRM Magazine, 2007, ‘Next Generation Online channel Reporting for Banking and Investment Firms’, EBSCOHost, p. 1-4, vol. 11, no. 3, AN 24287378, viewed 23 October 2010
The focus on this journal is on the change of financial services industry to evolve how it approaches customers. It highlights the types of online channel to reach and service customers.
Foster, N, 2005 “ A pratical guide to leading and managing people at work”, Maximum performance, pg 444, viewed 24 October 2010
This articles talk about many start up companies during the 90’s are not making money while their inflated share prices were justified by expecting they might make profit in future. Most people thought that the rise of internet and technology of e-commerce could take over the world and bring profit for them and they started to buy dot com stock. They believe that the overblown of stock market expansion with the dot com company can actually brings big profit. There were no evidence showing that the new e-commerce company have been truly innovative in the good and service they provided. There were only future market projections with no assurance they would achieve it and yet a lot of people still invest lots of money in this companies.
http://books.google.com.my/books?id=bBT0WS26gWQC&pg=PA444&dq=how+dotcom+bubble+burst+happen&hl=en&ei=Ky3ITMvHGIqlcZzcqJkO&sa=X&oi=book_result&ct=result&resnum=6&ved=0CD8Q6AEwBQ#v=onepage&q&f=false
Garmhausen, Steve, 2008, ‘ARE YOU READY TO DO IT YOURSELF?’, EBSCOHost, p. 35-36, vol. 38, no. 7, AN 28860809, viewed 23 October 2010
The journal is about discipline and self-study can help to earn profit from online trading. Searching on discount brokerage, internet chat rooms provide several of information on investment are the highlights in this study.
Goldberg, Steven T., Baldwin, Ian, Pulfrey, Christine, 1999, ‘Online Brokers grow Up’, EBSCOHost, p. 92, vol. 53, no. 11, AN 2343273, viewed 23 October 2010
This journal highlights on the little or even no awareness of many investors that brokers can jack up the cost of stock trading.
Grimshaw, D, Kwok ,S, 1998,The Virtual Workplace: The business benefits of virtual organization, Ideal Group Publishing, USA
This article talks about the benefits of virtual organization. The points are relevant in relating benefits of investment going virtually.
http://books.google.com.my/books?id=nK5EgZrQcRAC&pg=PA45&dq=what+the+benefits+of+virtual+investment&hl=en&ei=9jbITLOEC82kcaqK1bEF&sa=X&oi=book_result&ct=result&resnum=1&ved=0CDEQ6AEwAA#v=onepage&q=what%20the%20benefits%20of%20virtual%20investment&f=false
Suzanne Slesin, 1993, ‘CURRENTS; A Shed for Every Intention’, EBSCOHost, p. 3, AN 30248211, viewed 23 October 2010
This study used classification tree analysis to examine who is and who is not willing
to use online employer-provided retirement investment advice. Using data from the
Retirement Confidence Survey (Employee Benefit Research Institute. 2004). the study
focused on who was more likely to use online retirement investment advice when it
was available from their employer.
Young, M, Jude, M, “Reduce cost, improve efficiencies and focus on your core business”, The case for virtual business process, pg 144, viewed 24 October 2010
This article highlighted that the competitive advantages of virtual organisation. It stated that virtual business will have identified that there is a potential opportunity and being able to exploited the opportunity and prepared to leverage it for additional opportunities. As we enter true information age, we will find that only information-enabled infrastructure will make possible kinds of business dynamics that will required for growth and survival based on this book. We can related it to a point which makes investment to growth into virtual environment and what the benefits it will bring.
http://books.google.com.my/books?id=-5OQR9oiIuQC&pg=PA174&dq=what+the+benefits+of+virtual+investment&hl=en&ei=PDfITIesMoiXcfvewLIF&sa=X&oi=book_result&ct=result&resnum=2&ved=0CDIQ6AEwATgK#v=onepage&q=what%20the%20benefits%20of%20virtual%20investment&f=false
7.0 Other sources
AllBusiness, 2000, What if…the internet bubble burst?, viewed 23 October 2010, http://www.allbusiness.com/technology/internet-technology/882825-1.htmlBBC, 2010,
BBC News – Dotcom bubble burst: 10 years on, viewed 22 October 2010, http://news.bbc.co.uk/2/hi/business/8558257.stm
Bloomberg Businessweek, 2000, Why the Burst Internet Bubble Didn’t Break the Economy, viewed 23 October 2010, http://www.businessweek.com/bwdaily/dnflash/july2000/nf00721d.htm
Desai, Anil, 2007, The Definitive Guide to Virtual Platform Management, Realtimepblishers.com, http://books.google.com.my/books?id=dbi0Mn5XHuQC&pg=PA84&dq=what+is+the+challenges+of+virtual+investment&hl=en&ei=kQrJTKu5LobKvQOyg6nFDw&sa=X&oi=book_result&ct=result&resnum=1&ved=0CCwQ6AEwADgK#v=onepage&q=what%20is%20the%20challenges%20of%20virtual%20investment&f=false
NetHistory, 2010, The dotcom Bubble, viewed 23 October 2010, http://www.nethistory.info/History%20of%20the%20Internet/dotcom.html
Rfintentindex, 2010, RF intent Index, viewed 23 October 2010http://www.intentindex.com/
Slideshare, 2010, Dot-com bubble effect on Commercial Real Estate, viewed 23 October 2010, http://www.slideshare.net/cbcommercial/review-of-cre-dotcom-bubble-5395859
Stocks And Futures Trading, 2010, Stocks And Futures Trading, viewed 23 October 2010, http://stocksandfutures.adjrevolution.com/
The Investor’s Journal.com, 2010, Lessons from the Dot-com Bubble, viewed 23 October 2010, http://www.theinvestorsjournal.com/lessons-from-the-dot-com-bubble/
Web Strategy, 2008, Social Network Stats: Facebook, MySpace, Reunion, viewed 23 October 2010, http://www.web-strategist.com/blog/2008/01/09/social-network-stats-facebook-myspace-reunion-jan-2008/
Wharton, 2002, How Does the Internet Affect Trading? Evidence from Investor Behavior in 401 (k) Plans, viewed 23 October 2010, http://finance.wharton.upenn.edu/~rlwctr/papers/0114.pdf
Wired, 2010, 10 years After: a Look Back at the Dotcom Boom and Burst, viewed 23 October 2010, http://www.wired.com/magazine/2010/02/10yearsafter/all/1
WiseGeek, 2003, What was the Dot-com Bubble?, viewed 23 October 2010, http://www.wisegeek.com/what-was-the-dot-com-bubble.htm
Witiger, 2010, E-commerce Statistics, viewed 24 October 2010, http://www.witiger.com/ecommerce/ecommercestatistics.htm
U.S. Securities and Exchange Commision, 2007, Internet Fraud: How to Avoid Internet Investment Scams, viewed 23 October 2010, http://www.sec.gov/investor/pubs/cyberfraud.htm
